MCHP

PQUS · Weight decrease · 2d

Pictet Asset Management's AI-managed PQUS, which employs an AI ranking system across approximately 165 US large-cap holdings and rebalances periodically, initiated a consecutive weight reduction in MCHP. This adjustment reflects a systematic re-evaluation of the company by the fund's algorithms, likely triggered by its valuation metrics, such as a PER of 235.14. Despite the stock achieving a 1-year return of +52.9% and trading near its 52-week high at $99.77, the AI appears to be weighing the company's comparatively low ROE of 3.47%. The fund's methodology, which incorporates sector-balance and concentration rules, suggests this decreased exposure aligns with a quantitative assessment of the stock's current attractiveness within its defined large-cap universe.

weight 0.390% → 0.370% (-0.020 pp)·stock up 8.7% in the 30 days before

Jun 19·entry $102.71·now $80.51

PQUS · Weight decrease · 2d

Pictet Asset Management's PQUS, employing an AI ranking system across its approximately 165 US large-cap holdings, has systematically reduced its exposure to Microchip Technology. This consecutive weight decrease, observed from 0.4100% to 0.3400%, suggests the AI’s algorithm is de-risking the position. Despite MCHP achieving a 57.8% 1-year return, its high P/E ratio of 210.81 likely triggered the fund’s sector-balance or concentration rules during a periodic rebalancing window. The AI system thus demonstrates adherence to its disciplined approach, moderating exposure to a stock with substantial appreciation but elevated valuation metrics.

weight 0.390% → 0.340% (-0.050 pp)·stock up 3.1% in the 30 days before

May 23·entry $98.05·now $80.51

PQUS · Weight decrease · 2d

MCHP’s price-to-earnings ratio of 220.81 and price-to-book ratio of 5.44 stand out against a 3.47% return on equity and 7.08% revenue growth. This valuation profile, indicating a high price relative to current profitability and moderate growth, likely triggered a re-evaluation within Pictet Asset Management's AI ranking system for PQUS, which emphasizes US large-cap stocks with measured turnover. The consecutive weight decrease in MCHP from 0.4500% to 0.4100% on May 16th and then 0.4000% on May 17th occurred after the stock's significant 30-day return of 39.6%, pushing its price to 91% of its 52-week high of $102.92. This reduction suggests that as MCHP neared its valuation peak after a rapid ascent, Pictet's AI, designed to manage a portfolio of approximately 165 US large caps with sector-balance and concentration rules, adjusted its holding to align with the fund's measured turnover style and potentially rebalanced sector exposure within Information Technology, given the stock's elevated valuation metrics.

weight 0.450% → 0.400% (-0.050 pp)·stock up 22.1% in the 30 days before

May 17·entry $92.76·now $80.51

PQUS · Weight decrease · 2d

The AI ETF likely reduced MCHP's weight due to its concerning negative revenue growth and negative return on equity, signaling a deterioration in fundamental performance. Retail investors should view such consistent de-weighting by an AI fund as a strong warning sign regarding the stock's underlying financial health, prompting a deeper review before investing.

weight 0.450% → 0.410% (-0.040 pp)·stock up 50.1% in the 30 days before

Apr 29·entry $90.17·now $80.51

LQAI · Exit · 1d

The LQAI fund, which applies Qraft's AI ranking to a universe of approximately 100 US large caps and rebalances weekly, opted to fully remove Microchip Technology from its portfolio on June 9th. This decision indicates that Qraft's AI-driven selection engine likely reassessed MCHP's suitability for a core large-cap allocation. Despite a significant 1-year price return of +59.2%, the company's valuation metrics, such as a very high P/E ratio of 225.41 paired with a relatively low Return on Equity of 3.47%, may no longer align with the AI's selection criteria, causing it to fall out of the top rankings. Such a swift divestment aligns with the ETF's frequent, AI-managed adjustments to its diversified yet focused holdings.

weight 0.260% → 0 (exited)·stock down 7.7% in the 30 days before

Jun 9·entry $91.47·now $80.51

AIEQ · Exit · 1d

The AI ETF likely divested MCHP due to its concerning fundamental performance, specifically negative revenue growth and-return on equity, indicating a company facing significant financial headwinds. This rapid exit suggests the AI system prioritizes strong underlying financials or de-risks quickly when short-term theses fail against deteriorating fundamentals. A practical takeaway for retail investors is to prioritize companies with positive and growing revenue and ROE, as even sophisticated AI funds will quickly exit positions in financially deteriorating firms.

weight 0.480% → 0 (exited)·stock up 43.7% in the 30 days before

May 3·entry $95.30·now $80.51

AIEQ · Weight decrease · 2d

The AI ETF likely reduced MCHP's weight due to its negative revenue growth and significantly negative return on equity, signaling deteriorating financial health. The consecutive decreases suggest the AI algorithm is reacting to sustained poor fundamental performance. Retail investors should take this as a cue to prioritize fundamental analysis, particularly focusing on profitability and growth metrics like revenue growth and ROE, when evaluating investment opportunities.

weight 0.470% → 0.440% (-0.030 pp)·stock up 50.1% in the 30 days before

Apr 29·entry $90.17·now $80.51